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Technology Stocks : Advanced Digital Information Corp. (ADIC) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Oravetz who wrote (2215)	12/7/2001 8:41:53 AM
From: Jim Oravetz	Read Replies (1) \| Respond to of 2283

ADIC Q4 Sales Top $90 Million as Preliminary Numbers Confirm Sequential Growth, Operating ProfitabilitySpecial Items Reflect Effect of Economic Downturn On Investments, Sublease REDMOND, Wash., Nov 13, 2001 Advanced Digital Information Corporation today confirmed that preliminary results for the fourth quarter ended October 31 indicate sales were over $90 million and that operating profits and net income, exclusive of special items, are expected to be within the range forecasted prior to the recent terrorist attacks. On July 19, the Company announced that the economic slowdown in the U.S. and Europe would reduce third quarter sales to a range of $81-$85 million and that sales for the fourth quarter would likely be between $85 and $95 million. Actual third quarter sales were nearly $85 million and, at more than $90 million, sales for the recently completed fourth quarter will be in the top half of the anticipated range. Also as anticipated, the Company reported positive operating earnings for the third quarter and expects to report similar breakeven or better operating results for the quarter ended October 31, in each case before special items. As a result of severely reduced values in the equity markets and the uncertainty of any recovery in equity prices, the Company said fourth quarter results will reflect a special, non-cash charge relating to a reduction of $8 million in the carrying value of investments in certain private technology companies. These investments had a carrying value of $16.5 million at October 31, 2000 and, based on external factors rather than the performance of the companies themselves, the Company believes it is appropriate to reduce the value of these investments. ADIC also announced that significantly changed conditions in the Denver real estate market will result in the Company recording a liability to reflect a one-time fourth quarter charge of $2.3 million for anticipated future costs to exit surplus manufacturing and development facilities. It had previously been expected that sublease income would substantially offset this charge but continued economic weakness makes such recovery highly uncertain. The Company expects to move into its new, larger Denver facility during the current fiscal quarter. Preliminary fourth quarter results indicate the Company's cash and marketable equity securities will approximate $175 million. The Company will release its final fourth quarter and fiscal 2001 results after its independent audit is completed during the second week of December. A teleconference will be scheduled at that time to discuss final results, the outlook for first quarter, fiscal 2002 and general business conditions.